Stock futures pointing upward, looking to recover losses from this week’s dip
The stock market is pointing upward before the opening bell which indicates a bullish recovery movement. Though bullish, the DJIA index is set to record a sharp weekly loss. Traders will stay cautious when deciding to enter long positions in the stocks. It is better to wait for a more bullish signal from the inflation and interest-rate side before jumping into major positions.
Dow Jones Industrial Average (INDU)
There is not much hope for a bullish reversal yet as the index continues moving lower. However, the index currently sitting near the 30,000 handles which means a possible bounce might happen. DJIA futures are currently higher by more than 200 points which indicates a bullish bounce. Traders will stay cautious and wait for the bullish movement to reach the resistance level.
When the index reaches resistance level and forms a bearish reaction then it is confirmation for bearish continuation.
International Business Machine (IBM)
IBM share prices are in a bearish correction and stick near the daily SMA 50. There is no bearish continuation yet but we might see further weakness to target the trendline and daily SMA 200. If the share prices could bounce from the support levels then traders could enter long positions.